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Both contracts are confident in their directions

Published Friday, June 6th, 2014

July ICE: The monthly correction point support at 40.35held yesterday but has been broken below this morning. One now has to go to the monthly chart in search for supports. A close below the aforementioned retracement level is obviously a sell. Based on this morning’s price movements, however, bears might consider pre-empting and sell part of their planned volume and then go fully short if 40.35 is settled below. In that case the next downside objective will be green-lighted – the 200-month M/A at 36.34. Of course, in case40.35is settled back over no short positions should be held as such a move would make this morning’s weakness a bear-trap. The daily, weekly and monthly slow stochastics are all negative albeit low. Given the relentless march lower this year all of them will display a bullishness when they turn north.

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Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.